https://www.taxtmi.com/caselaws?id=796600 Rejection of books under Section 145(3) requires material showing that accounts are incorrect or incomplete. The notes state that audited books, inventory records, purchase and sales registers, vouchers and stock valuation reports were maintained, with no identified discrepancy, unrecorded transaction or other defect apart from missing quality-wise diamond particulars. Consistent accounting and stock-record practices had been accepted in other scrutiny assessments, and the declared profit rate remained broadly consistent. Mere absence of qualitative stock details did not make the accounts unreliable, while estimating net profit at 3% lacked a rational or scientific basis. The Section 145(3) invocation and resulting addition were therefore unsustainable. en-us Fri, 31 Jul 2026 00:00:00 +0530 Fri, 07 Aug 2026 09:07:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=796600 Rejection of books under Section 145(3) requires material showing that accounts are incorrect or incomplete. The notes state that audited books, inventory records, purchase and sales registers, vouchers and stock valuation reports were maintained, with no identified discrepancy, unrecorded transaction or other defect apart from missing quality-wise diamond particulars. Consistent accounting and stock-record practices had been accepted in other scrutiny assessments, and the declared profit rate remained broadly consistent. Mere absence of qualitative stock details did not make the accounts unreliable, while estimating net profit at 3% lacked a rational or scientific basis. The Section 145(3) invocation and resulting addition were therefore unsustainable. Case-Laws Income Tax Fri, 31 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=796600